Capital Allocation

By editor on January 28, 2018 — 1 min read

Mark is becoming a master capital allocator. What Warren Buffet is is a capital allocator. What Larry is learning to become is a capital allocator. Jeff is actually the best capital allocator of all of them. He takes just enough small bets, makes thousands of bets. The minute that something works, he’s able to put money into it.

He’s the only person to have built two hundred billion dollar companies. AWS and Amazon’s retail business. Nobody else has. Facebook has acquired it, and Larry has acquired it. Jeff built it.

AWS is a tax on the internet. The minute you can frame your mind to understand why that is so, most of the companies will spend 1-2% of their revenue on AWS. It’s a tax. You are better off making small amounts of money off of everybody than large amounts of money off of a few people. Simple economics.

It is the single biggest stock I own. I am fearless about owning it 30 years from now. It’s impenetrable.